The questions I most often get asked about marketing budgets are:
All totally reasonable questions… but what you should be asking is: what shape should my marketing budget be? Seriously, it is the most important question there is on the budgeting front. So, let me tell you what I mean.
A decent marketing programme is centred on a sales funnel, onto which you’ve mapped the decision making process for your target audience. (see previous posts Making Marketing Pay, and What to Say When).
Fig1: Chart to show the influence of marketing spend across the sales funnel
From this you can put together a programme of activity that moves a person from awareness to a sale. Each marketing technique has a different level of influence at each stage of this process. You need to determine the level of influence at each stage, then apportion this across the funnel.
There are a few ways to decide the amount of influence each technique has:
From this exercise you now have a powerful tool for designing programmes and allocating budget. Now analyse your budget in the same way:
Compare your actual budget shape to the ideal budget shape you’ve established to maintain a free-flowing sales funnel. This allows you assess where you’re spending too much or too little, and to adjust your spend according to the funnel requirements.
Now, if you have a budget cut, or find a pot of cash, you again have a powerful tool to decide how to adjust your spending. The crucial factor here is to maintain the shape. So, rather than cutting a project that happens to be the right level of spend, you can cut evenly across the funnel ensuring that you’re not leaving any gaps.
Facebook won't suddenly transform your business into a superstar sales machine. But it can help you win friends and influence people. But like anything else in life, this is about commitment, effort and starting on the right footing.
A lot of people still get sucked into the idea of thinking "if we build, they will come". And doubly so with Facebook — just because there's a huge audience, it doesn't mean everyone is suddenly going to beat a path to your door!
So it's as well to begin with the basics — think long term, trust in your network of friends and stay focused. With that in mind, here's my ten steps to create a powerful Facebook page:
Hopefully, that all makes perfect sense and you're inspired enough to venture forth and create an amazing page for your company. And be sure to come back and tell me how you got on!
Drayton Bird is a renowned direct marketing teacher, speaker and author. Find out more about him on his profile.
To heighten an experience you can create expectations and/or you can condition the experience.
It adds to the “sizzle and the steak”.
I have recently been spending a lot of time thinking about product launches. My employer, SellerDeck, is a few weeks away from rolling out a major update to one of its ecommerce software products. While we have the advantage of an existing user base, many of the fundamentals for launching are the same whether it is an existing product or something completely new.
1. Understand the Unique Value Proposition
If your product is sat on the launch pad I would hope by this stage you know what it is that makes your offering different from the rest. The importance of your Unique Value Proposition (UVP) cannot be understated; it’s the lifeblood of any product launch. Review, discuss and research until you are totally convinced you have got it right; you only get one launch window.
2. Talk to prospective customers
Get out there and talk to the very people you want to sell your product to. Discuss your plans for the product, both now and in the future. Get their feedback; it could be you missed something.
3. How are you going to sell and market?
Choosing where to market your product can be difficult. Make informed decisions based on research. It might even be a good idea to run several small pilot schemes to see where you get the most success. However prepare to be ruthless if you’re not seeing the results. It’s easier to make decisions before you have spent the entire budget on something that’s not working.
4. Make yourself heard
Find out who the influential people are in your space and hustle, annoy and pester them. That is until you get a chance to demonstrate why your product is the best. Nothing is better than a personal recommendation regardless of the product or service. Go to events, chat to people and network, network, network!
5. Bring the whole team on the journey
A successful product launch requires commitment and understanding throughout your organisation.
When President Kennedy visited NASA in 1961 he came across a cleaner, and asked him what his job was. The cleaner replied “My Job is to put a man on the moon, Sir”. Now that probably is the greatest launch of all time.
If a business leader asks his sales manager, “Where should I invest to grow the business another 20 per cent next year?” the likely response is, “Give me 20 per cent more headcount.” If the head of marketing is presented with the same question, a familiar response would be, “Give me 20 per cent more budget for my campaigns.”
But these aren’t necessarily the right solutions for achieving growth. This is where a new strategy comes into play: Revenue Performance Management (RPM). Decisions about how to grow the business should be made by looking at the entire sales funnel — from unknown prospects, right through to closed sale.
Successful companies do not launch new products, open new offices or make new acquisitions without rigorous testing. Yet, historically, sales and marketing have not been subject to the same scientific rigour as other areas of the business. The fastest-growing companies, however, have a “secret.” They have created a “science of growth” by running a high-performance sales and marketing engine that uses data to drive decision-making.
Having a birds-eye view of the point at which a prospect becomes a lead all the way through to the point where the lead becomes a client allows businesses to better understand their previously least understood cost centre – marketing and sales. RPM helps companies manage interactions with buyers all the way through the purchase process to achieve more predictable, rapid, and profitable revenue growth. In other words, it offers “one view of the truth” so that the management team knows exactly where to invest in order to be successful.
For a company to engage in a successful RPM strategy, it must create seamless connections between all of the tools used to engage with prospects — from social media “listening platforms” to CRM — and create common dashboards that give real-time insights into the performance of the sales funnel.
This information must be actionable. Decision-makers must be armed with live data to know what levers to pull to dramatically change revenue performance — whether that decision is to add new sales reps, increase marketing spend or another investment entirely. The solution will vary from company to company. But what doesn’t change is the science of success: Revenue Performance Management.
Stuart Wheldon is the Senior Director of Customer Success & Strategy at marketing automation specialist, Eloqua.